History of Hong Kong Island

Chapter 267 Cooperation with Foreign Firms

"I'm not joking." Garcia crossed his legs, took out a cigar in his arms, looked at him and said, "With He Sheng's reputation among the Chinese, his power in the police force, and his influence in the business world, he has completely lost his reputation." Inferior to the established family."

"Although He Sheng's political power is not close, but he has guns and people, and he is young, and youth represents everything!"

In terms of family assets and connections, He Dingxian is actually far away from the established families, but he has a lot of time and opportunities to break through!A rising star, and an old family that is not as good as the previous generation, anyone with a discerning eye knows who has a better future.

He Dingxian took the cigar with a smile: "I like to listen to your speech."

"Nice!"

He poked his head to accept the lighter handed by the ghost.

"Snapped."

Garcia turned on the lighter and said softly, "He Sheng wants the Yau Ma Tei Ferry Company, no problem, but He Sheng needs to provide resource exchange."

Although the Yau Ma Tei Ferry has already lost to the Star Ferry Company in the competition, as an important livelihood area on Hong Kong Island, the value of the franchised line is also very high.If the news of the sale of the shares of the Ferry Company is released, there will definitely be a lot of people rushing to buy it.

At the beginning, Citigroup took a fancy to the potential of the ferry industry and lent money to Yau Ma Tei Ferry to build a pier and purchase ferries, thus obtaining 20.00% of the shares.

"I know that there is a charge for speaking nicely in the extra class." He Dingxian squeezed his cigar and exhaled: "What conditions?"

"Citigroup hopes to cooperate with your company's Oriental Bank to open a time deposit business." Garcia said: "Time deposit is a new financial service opened by the head office. return."

"It cannot be withdrawn during the period, unless liquidated damages are paid."

Time deposit service, which is very popular in later generations, is a new financial product at present.

In the financial industry, it is very difficult to promote new products.Because the public is instinctively skeptical of new products, and out of risk avoidance considerations, they try to choose familiar financial products as much as possible.If it is said that British-funded foreign firms have the endorsement of the Hong Kong government and can gain the trust of Chinese businessmen, it is indeed difficult for American-funded foreign firms to take root in Hong Kong Island.

First of all, the Chinese will not trust American-funded banks, and secondly, they will face full competition from British and Chinese-funded banks.Therefore, American-funded foreign firms have always been in the second-tier in the Asia-Pacific region, and their competitiveness is not comparable to that of British-funded firms.

In the early days, Citigroup relied on innovative services such as "traveler's cheques", "compound interest system", and "unsecured loans", and developed step by step. It also issued "victory loans" and "war loans" during wartime, helping the US sell 56 billion National debt is greatly appreciated by the gentlemen of Congress.

Of course He Dingxian understood the time deposit system, but he never thought that the Yankees played it so early.It can only be said that when it comes to finance, Wall Street really deserves to be the number one in the world. They dare to take any step, but they are playing borrowing to death.

Where did the regular money go when it was deposited in the bank and could not be withdrawn?It's been loaned out, otherwise the money will accrue interest if it is placed in the warehouse!Borrowing is always the core appeal of all financial products, and the fixed-term method is to expand loans while limiting users' withdrawals, avoiding the risk of bank runs, and greatly increasing the use of funds for banks.

The reason why Garcia wants to cooperate with Eastern Bank is not because of the money from Eastern Bank, but because he wants to use the reputation of Eastern Bank among the Chinese to launch regular products to the largest number of Chinese on Hong Kong Island.

"Please rest assured, Mr. He, time deposits are not a bad thing. Proper management is beneficial to both depositors and banks." Seeing that He Dingxian was lost in thought, Garcia explained aloud, fearing that he would not be able to understand the utility of time deposits.

He Dingxian laughed and said, "I understand what you mean."

There are benefits to doing well, of course, but what if it fails?All previous financial turmoil in the world has been inseparable from the Yankees every time. If it were not for the powerful aircraft carrier, fleet, Wall Street would have gone bankrupt hundreds of times.

The Third Civil War both opened up.

However, the strength of the U.S. side actually exists. Cooperating with Citibank, there is indeed no risk of bankruptcy for decades. In the future, it is meaningless to think too much.

"So, what kind of cooperation method is your bank's cooperation?" He flicked the cigarette ash with a thoughtful face.

Garcia's eyes lit up, his eyebrows showed joy, and he said with a smile: "In the name of Eastern Bank and Citibank, we jointly launched a time deposit product. The two-year, three-year, five-year, and ten-year interest rates are at three points. Three point five, four point five, six point seven."

"Of course, this is the annual interest rate. According to the company's compound interest system, the ten-year interest rate is already very impressive."

He Dingxian sneered: "Ordinary citizens deposit [-] Hong Kong dollars in the bank, lie down and don't need to work, and earn interest, right?"

"Eh, there is a chance to catch up with the increase in prices, but it is difficult to keep up with the increase in the property market and precious metals." Garcia did not talk nonsense, and said sincerely: "And within ten years, depositors will not be able to use money for consumption."

"The money doesn't belong to him, so he still has to go to work."

He Dingxian nodded: "Continue!"

Garcia said: "The financial products sold by our two banks are uniformly handed over to Citibank for use. Correspondingly, Citigroup is responsible for cashing out cash withdrawals by customers. For example, the fractional tsunami, war, financial crisis and other events cause runs."

"Citibank is fully responsible for the guarantee. Of course, Citigroup will give Eastern Bank a certain commission based on the sales volume of the product. The commission is between [-]% and [-]%, depending on the fixed number of years."

He Dingxian thought for a moment, and must admit that Citigroup came here with great sincerity, but he still changed the terms: "How about this, the financial products sold by both parties belong to both parties, but Eastern Bank can buy Enter the corresponding product quantity of Citigroup, and add the commission to the interest.”

"In the event of a run, the two banks are responsible separately."

On the surface, the revision of the clauses is unnecessary, but the two banks have changed from dealing with depositors together to independently dealing with depositors, and signing a contract with each other, so that they can purchase insurance to avoid the possibility of problems with Citigroup products.

There are many insurance companies abroad that specialize in guaranteeing banking business.

In this way, He Dingxian will not be afraid of an accident with Citigroup, because the insurance company's compensation can completely deal with the depositor's loss of funds.

Garcia gave him a meaningful look, nodded and said, "Deal!"

He Dingxian stretched out his hand, smiling all over his face: "Hahaha, thank you for adding sir."

"Shopkeeper Qiu, draw up a contract." He turned his head and ordered, and Qiu Degeng immediately stepped forward to hand over to the assistant of Citi Taipan.

It takes a lot of time to write a page-by-page contract, especially when the lower case contracts are spread out to dry the ink one by one, the scene is very contemporary.

Of course, these contracts are only a preliminary prototype, and the two parties sign on the spot, which means cooperation and confirmation, but the details of the legal clauses need to be dealt with by the lawyer's office.

Finally, Citibank sold 20.00% of Yau Ma Tei Ferry's shares directly to Dongfang Group at a price of 100 Hong Kong dollars each.Dongfang Group paid [-] million in cash, which is already a considerable amount of shares in these years, and the news will definitely be published in the Hong Kong Island Commercial Daily.

But in He Dingxian's opinion, this acquisition is very worthwhile, because Yau Ma Tei Ferry Company not only has the franchise qualification, but also has the physical assets of five ferries, each of which is worth 30 million yuan.

This equity transaction was considered very successful, but unfortunately, the Yau Ma Tei Ferry Company itself became the main project, and the bank cooperation became the main project of both parties.

"Boss, the lawyer firm has perfected the legal clauses for cooperation with Citibank's products." Two days later, Qiu Degeng sat in the attic of Dongfang Bank, wearing a long robe, and reported to the boss: "Dongfang Bank, Qianzhuang are all Billboards have been written and erected in the lobby, recommending fixed deposit projects to customers.”

"As far as I know, Citibank has started renting billboards on the street to promote it, and the effect seems to be very good."

He Dingxian quite agrees: "After all, the interest rate of time deposit is high, and I am afraid that it will become a big business in the future. Eastern Bank will cooperate with Citigroup for two years first, and then it will have to launch its own financial products."

"A Geng, I have a chance to go to Wall Street and send a few young guys to study abroad."

"Americans are experts in finance, and there is nothing shameful in learning from experts."

Qiu Degeng was very impressed when he heard the words, and said: "The big boss has a long-term vision and thorough thinking. I will pick a few smart guys and go to the United States to drink foreign ink. They are about to prosper."

"Hehe, if you are willing to work hard to learn the language well, you should be born to be prosperous these days." He Dingxian picked up the teacup and took a sip of tea: "In short, the first three who have learned English will be sent to them."

"Food and drink for the boat ticket are all covered by the company, and the monthly salary is paid as usual, and an additional one hundred subsidies for studying abroad will be given."

With the relationship with Citigroup, it is very simple to send someone to a Wall Street financial company in the United States, or even to study abroad within a foreign bank, and it is not really going to school.If the effect is good, it will be fine to send people there every year in the future, and the Chinese financial industry should also work harder.

"I would like to thank the boss on behalf of the youngsters first." Qiu De chuckled even more, and said: "The accountant has already figured it out, and if he wants to acquire another 20.00% of the shares of the Yau Ma Tei Ferry, he needs a total of 270 million Hong Kong dollars."

"If you want to buy Yau Ma Tei Ferry Company 800%, you need at least [-] million Hong Kong dollars, which is not a small figure. Of course, the bank can fully see it, and it depends on whether the boss needs the bank's money."

All public stocks go up, not to mention equity in private hands.

It is impossible for him to buy 800% of the shares at a price of [-] shares, and a mere [-] million Hong Kong dollars is not a big amount.

"Don't touch the money in the bank, and I don't plan to pay any money. This piece of meat is just to be distributed to the brothers to make them happy." As well as the serious crime team and the uniform team.

(End of this chapter)